The FCA and its role to protect individual investors’ interests

Finance for life by Community Manager - No comments

Markets seem sometimes a jungle, but they have their own rules. In addition, they also have regulators to avoid that any player can break the rules and protect the rights of the weaker ones: individual investors.

It’s you, for instance: you have a nice amount of money, you invest it in a firm and suddenly the firm disappears. Regulators help investors get information about doubtful firms. In the case of Britain, the Financial Conduct Authority (broadly known as FCA) is the regulator for financial market players. In the case of Gear Investments, we could not offer our services till the FCA allowed us to do it. We were tested and passed all the requirements to operate. That is why we announce it in our homepage.

Trust and confidence are the main values in financial markets. As the FCA says in its website: “Financial markets need to be honest, fair and effective so that consumers get a fair deal”. One of the most important points for individual investors is the risk profile test.

The FCA reviews carefully it, because it is very relevant: the degree obtained by the investor in the test is the beginning point to invest in certain financial products. For instance, if you are a traditional investor that avoids equities, your profile will be very conservative or conservative. Profile tests must be correctly designed so that the result is that and not any other. That is why the role of the FCA is relevant to protect investors’ rights. The work begins when somebody decides to invest, not when he or she has lost everything because the firm was a fake.

The FCA is the conduct regulator for 56,000 financial companies and financial markets in the UK and the prudential regulator for over 24,000 of those firms. So, if you decide to invest, do not forget to visit the FCA website and check in its register that the firm you choose to invest has been authorised by this institution.

Image: PublicDomainPictures from Pixabay

Tags: FCA, Financial Conduct Authority, Financial markets, Investors,

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